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exception that is not pertinent here, the accuracy-related
penalty under section 6662(a) is inapplicable “with respect to
any portion of an underpayment if it is shown that there was a
reasonable cause for such portion and that the taxpayer acted in
good faith with respect to such portion.” Sec. 6664(c)(1); see
also sec. 6664(c)(2). Respondent’s position as to the accuracy-
related penalties was unreasonable in both fact and law.
We turn to apportion petitioner’s litigation costs to the
accuracy-related penalties issue. Respondent does not contest
the reasonableness of petitioners’ costs for the entire
litigation, and neither do we. We do not believe, however, that
many of those costs are attributable to petitioners’ defense of
respondent’s determination of the accuracy-related penalties.
Petitioners’ itemized statement of litigation costs does not set
forth with any specificity the amount of those costs that is
attributable to the accuracy-related penalties issue; thus, we
proceed to determine that apportioned amount on the basis of the
record. See Ragan v. Commissioner, 135 F.3d 329, 335 (5th Cir.
1998), affg. T.C. Memo. 1995-184, and the cases cited therein;
see also Dixon v. Commissioner, T.C. Memo. 2000-116; Lozon v.
Commissioner, T.C. Memo. 1997-537.
Petitioners devoted little time at trial to the accuracy-
related penalties issue, and they spent even less time on that
issue on brief. They did, however, devote much of the instant
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